Wild Overnight Market Activity

Asian stock markets reversed huge losses on Thursday as central banks provided massive amounts of liquidity to the world financial system.

In Hong Kong, the Hang Seng fell 7.7 per cent during the morning session. News of the intervention came in the last of half an hour of trading in the afternoon and the index rallied to show a gain of 1.2 per cent on the previous close within twenty minutes. But the benchmark then fell back in the next ten minutes to close almost unchanged on the day, down 0.03 per cent at 17,632.46.

The MSCI Asia Pacific Index was 1.9 per cent lower at a three-year low of 108.47 by early evening in Tokyo, after earlier dropping as much as 4.3 per cent.

In Singapore, the Straits Times Index closed 0.4 per cent higher at 2,429.58 after earlier falling as much as 4.6 per cent. In India, the Sensex’s early 5.3 per cent fall had turned into an 0.3 per cent gain by mid afternoon in Mumbai at 13,297.89.

-EPJ Newsdesk

Heavy Losses Overnight; BOJ Injects Funds

Asian stock markets sustained heavy losses overnight.

Japanese and South Korean exchanges  dropped 4.95% and 6.1% respectively. These exchanges were closed Monday for a holiday.In Tokyo, the Nikkei 225 Stock Average ended at 11609.72, a three-year low. Exporter stocks were hurt by the rising yen, while banking stocks were also hard-hit. Mizuho Financial Group went limit-down while Aozora Bank tumbled 16% on its relatively large exposure to Lehman, while Tokio Marine Holdings ended down 13%.

Meanwhile, the Bank of Japan injected ¥2.5 trillion into Japanese money markets Tuesday and said it would work to ensure stability in the market.

In Korea, the Kospi Composite ending down 6.1% at 1387.75, its lowest close since March 2007.

Hong Kong's Hang Seng tumbled 5.4% to 18300.61 amid weakness in China-related shares. The mainland's Shanghai Composite Index, which tracks both Class A and Class B shares, ended down 4.5% at 1986.64, despite Monday's surprise interest rate cut.

-EPJ Newsdesk